The Hindu Business Line : New Year sales mixed for Chennai-based retailers

AS expected, the New Year sales held by Chennai-based retailers fell short of the usual levels due to the pall of gloom cast by the recent tsunami. However, for sales held in the shadow of a catastrophe of this magnitude, they weren't bad, say retailers.

According to Mr B.A. Srinivasa, Director, Vivek Ltd, the company's Chennai city and Bangalore outlets did well. Sales did drop upcountry, where the impact of the tsunami was greater, he said, adding that there was a 10-15 per cent drop from the company's expectations. The warning of another tsunami a few days after the first one struck also did its bit to dampen sentiment, he said.

Mr H. Vasanth Kumar, Proprietor, Vasanth & Co, said the tsunami did not have any effect on sales. There was a setback in Nagercoil which was affected but overall, the sales grew by 27 per cent, he said.

"We did reasonably well in spite of the circumstances but it's nothing to thump our chests about," said Mr S. Anand, Managing Partner, Abirami Home Appliances. His view is that even in Chennai, outlets which are closer to the seaside saw a drop in sales, while those that are not did not. This is borne out by a salesperson's remarks in a busy Anna Nagar store: "What tsunami? Look at this crowd!"

That apart, some retailers also did not agree with the view that New Year sales were losing their significance because some sale or the other went on throughout the year.

Mr Srinivasa of Vivek said that both New Year and Diwali sales had their own importance. Every year, new dealers are launching New Year sales, with between 200 and 300 outlets participating, he said, adding that the revenue from these sales is increasing.

"It is a phenomenon that will continue spreading, like it did from Chennai to Bangalore," he stated. This is contrary to what other retailers told Business Line earlier - that the contribution to the annual turnover from New Year sales was on the decline. Mr Vasanth Kumar also dismisses the point that New Year sales are losing their relevance.

Categories that did well in this year's sales were microwaves, DVDs, colour TVs (of which flat screen TVs accounted for a lot, and spurred by expectations from DTH technology), and small appliances which cost less than Rs 3,000 ("but these usually do well because they are cheap and impulse buys as well, says Abirami's Mr Anand).

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